What You Must Know Before Buying a Condo in an Association
What You Must Know Before Buying a Condo in an Association
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Moving into a new home is one of the most exciting adventures a person can undertake in life. A new house represents a chance at a fresh start, a new life, new opportunities, and a blank canvas you can make your own.
For those that want the ideal balance between cost and space, condominiums represent an ideal home.
If you are looking at buying a condo, you have probably read over some of the rules and regulations of the condo association. This is a good practice since the rules of the association must meet your lifestyle expectations for harmonious living.
However, many people neglect looking at the association itself. Check on the association’s financials, their reputation, how they interact with their community members, and more to fully understand what life will be like living in a condo they manage.
Management Plus is focused on ensuring that all homeowners get the best experience possible. For that reason, we have assembled a list of some things you must know before buying a condo in an association.
What to Know Before You Buy a Condo
Don’t play fast and loose with your money, especially with an important purchase like a condo.
Before you buy, there are a few things you must know. Follow this list to get a better picture of what life will be like under a condo association’s management.
Look at the Operating Budgets
Review the condo association’s past two operating budgets. In addition, be sure to check out the minutes and notes from the past two years’ board meetings. This will give you a look behind the curtain at how the association operates, what they have planned, and if they have met their goals.
A red flag: if assessments have not increased in price over the last two years that could spell trouble. The costs of goods and services are consistently going up. If maintenance costs have not followed suit, it means the association is cutting corners.
Review the Reserve Study
Look at the reserve study for all major components in the building you want to purchase. Are there adequate funds to replace them should something go wrong? If not then there may be trouble down the line when something breaks.
Ask Pertinent Questions
Ask as many questions as you need answers for. Don’t be shy. If the association won’t answer your questions, consider it a red flag.
Ask about routine maintenance, whether the board expects to increase assessments if there are any current special assessments, any pending assessments, and anything else you want to know.
Just be sure to ask before you buy rather than after.
Look Into the Insurance
Determine your insurance obligations before you buy. Also, be sure you understand the obligations of the condo association. The association will typically ensure the outside of the building, while the owner is responsible for what is inside of the building.
However, it varies from association to association, so be sure you know what you will be responsible for after you have made your purchase.
Never Waive Your Right to View Association Financials
Don't overlook key financial details just because it is a seller's market. Association financials will help you determine what will need to be replaced if the association has the money to make replacements/repairs, as well as how responsible the condo association is with their spending.
Better Association Management with Management Plus
You deserve the best association management there is to offer. That’s why you must take careful consideration before making a purchase.
If you are looking for better association management with less worry, then look no further than Management Plus.
At Management Plus, we put the community first. That means we take the time to ensure all structures, utilities, and resources are up to date to save you from unexpected outages.
If you need better property management, reach out to Management Plus today!